Skipping the MLS Cost Home Sellers Over $1 Billion — Especially in Communities of Color
- Neil Caron
- Mar 25
- 2 min read
🏁 At ReadySetLoan, we believe every homeowner deserves a fair shot at the finish line. But a new study from Zillow reveals that some sellers — especially in communities of color — are unknowingly losing thousands of dollars by not listing their homes on the Multiple Listing Service (MLS).
According to Zillow’s latest report, home sellers who bypassed the MLS in 2023 and 2024 lost more than $1 billion in total sale proceeds. On average, sellers lost nearly $5,000 per home, with much deeper losses in ZIP codes with majority Black, Hispanic, Asian American, Pacific Islander, or Native American populations.
Key findings from Zillow’s report:
Homes sold off-MLS went for 1.5% less on average than MLS-listed properties.
In communities of color, that gap widened to 3.2%, compared to just 1.2% in majority-white areas.
Majority-Black neighborhoods saw a median loss of $9,851, and majority-Hispanic areas lost a median of $13,728.
“The data is clear that selling off the MLS costs home sellers in communities of color thousands of dollars in lost value,” said Zillow economist Orphe Divounguy.
What’s more troubling? Nearly three-quarters of Hispanic and Black sellers said their agents recommended using private listing networks, compared to just 24% of white sellers.
At ReadySetLoan, we emphasize how crucial transparency and access are to closing the homeownership equity gap. Off-market listings reduce visibility, limit competition, and result in lower sale prices — outcomes that disproportionately harm underrepresented communities.
Why the MLS Still Matters
The MLS isn’t just a listing platform — it’s a gateway to:
Greater buyer exposure
Competitive offers
Fairer market value
That’s why we support policies like the Clear Cooperation Policy from the National Association of Realtors (NAR), which ensures listings are made public promptly. Zillow also backs this policy and used it as a backdrop for their recent study of over 2.7 million home sales, comparing MLS-listed and privately marketed properties.
The conclusion? Sellers in communities of color are being steered away from visibility — and paying the price.
🏁 Whether you're selling your home or just exploring your options, ReadySetLoan is your trusted guide to navigating the process confidently and fairly.
Don’t let hidden decisions cost you thousands. Reach out to ReadySetLoan today and let’s cross the finish line together.
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